chapter 04 INNOVATION “POWERED BY STARTUPS” The first reaction that large corporates have when they open themselves to the possibility of innovating through startups is to seek capital investment (corporate venturing) or directly go shopping (acquisitions). Although in many cases this types of model has been successful, it is an expensive option and there are high risks for failed integration due to the incompatibility of each organization’s DNA or because the short-term profitability demands of corporates end up undermining the innovation of entrepreneurs. “The bank’s strategy was firstly to step into the entrepreneurship through funds. Then, in Mexico, the bank invested in four innovations; this was the first innova- tion. Thereafter, when we worked with a startup, we assess the most proper type of relationship on a case-by-case basis.” D. Strimpopulos, director of BanregioLABS Institutional conversation, February 26, 2018 Christensen warns in the presentation of his theory of disruptive innovation that we must plant the seeds of the new business models at a healthy distance from the operation of the company: neither very close to its current profitability logic, nor too far from the proposal of value to the business. A TWO-WAY PATH 49